Cardano founder Charles Hoskinson has criticized traditional financial infrastructures, particularly SWIFT, forecasting their eventual demise.
Speaking in an interview on the David Lin Report, Hoskinson predicted that SWIFT and other large traditional financial systems will eventually “die” due to their inability to sustain themselves.
He backed up this claim by pointing to several shortcomings of legacy financial systems. In his view, legacy financial systems have numerous complexities and also impose high trust requirements, which can be frustrating for everyday users.
However, he suggested that it is easier to complete a transfer from a multi-signature wallet, such as Ledger. He argued that blockchain solutions provide superior security and greater ease of use. With biometric authentication from an Android or iOS device, Hoskinson said the blockchain system confirms the user’s identity instantly.
Moreover, Hoskinson noted that blockchain transactions are near-instant and cheap with no intermediary interrogating the sender.
“Legacy Financial System Is Broken”
Given the disparity between legacy financial infrastructure and blockchain-powered alternatives, the Cardano founder said the former is a broken system. He added that traditional systems will no longer be viable once people start using competitors, especially blockchain-powered payment systems.
Hoskinson’s remarks suggest that traditional financial infrastructures, such as SWIFT, are outdated and destined to decline due to inefficiencies. Other major crypto stakeholders, like Eric Trump, have echoed a similar sentiment.
As previously reported, the second son of the U.S. President also believes that the current traditional financial infrastructure is broken. He cautioned that unless traditional banks reform their operations, they risk going into extinction over the next 10 years.
In the meantime, traditional financial institutions are enhancing their operations with blockchain. A case in point is JPMorgan’s use of its blockchain-based Onyx platform for instant payments. Also, SWIFT is in an active partnership with Chainlink to enhance its operations.
